Who Qualifies For Child Tax Credit

What is the Child Tax Credit?

The Child Tax Credit is a federal income tax credit for qualifying taxpayers with dependent children under the age of 17. The Child Tax Credit provides a credit of up to $2,000 per qualifying child, depending on the taxpayer’s adjusted gross income. The credit is also refundable, meaning that even if you owe no federal income taxes, you can get the full credit amount as a cash refund.

Who Qualifies For the Child Tax Credit?

The Child Tax Credit requires that the taxpayer have a dependent child that is either under the age of 17, a full-time student over 16, or a totally and permanently disabled child of any age. In addition, the child must also live with the taxpayer for more than half of the year and have a valid Social Security number. To qualify for the full credit, the taxpayer’s adjusted gross income must be under:

$200,000 if single

$400,000 if married filing jointly

Those taxpayers whose income is over the above limits may still qualify for a partial credit, depending on the amount of their income.

In addition, taxpayers must not be someone else’s dependent and must not be filing as married filing separately.

What Are the Requirements for Claiming the Credit?

To claim the Child Tax Credit, taxpayers must file Form 1040 or 1040A and provide documentation for each of their dependents. They should also complete Schedule 8812, which includes information about each dependent’s age and Social Security number. It is important to keep careful records including birth certificates, passports, school enrollment records, and proof of disability.

In addition, when filing electronically, the taxpayer must provide an Individual Tax Identification Number (ITIN) for each of their qualifying dependents who do not have a Social Security number.

It is important to note that the Child Tax Credit is not refundable until taxes are filed, so if taxpayers expect to claim the credit they should file their taxes in advance.

When Can You Claim the Credit?

The Child Tax Credit can be claimed in any year a taxpayer has a qualified child, as long as the household meets the income requirements. It is important to note that the Child Tax Credit is an annual credit; it cannot be carried forward from one year to another.

In Conclusion

The Child Tax Credit is an important federal income tax credit that helps many taxpayers with the cost of raising children. To qualify, taxpayers must have a dependent child under the age of 17, or a full-time student over 16, or a totally and permanently disabled child of any age. In addition, the child must be a qualifying dependent, must live with the taxpayer for more than half of the year, and must have a valid Social Security number. The child tax credit is a refundable credit, meaning even if taxpayers owe no federal taxes, they can still get the full credit amount as a cash refund.